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Strategies & Market Trends : Level II Trading -- Ignore unavailable to you. Want to Upgrade?

To: DRRISK who wrote (256)	2/27/1998 12:04:00 AM
From: Cader	Read Replies (1) \| Respond to of 1086

Doc, I am confused. You say that you don't use ECNs? So do you eat the spread each time ie (SOES in and SOES out of a stock)? Am I missing something? Do you use Selectnet to exit a position? I don't know what Cybertrader charges for the ECNs but I do know that ISLD costs $1.00 per transaction and TNTO $.50 per transaction. This seems to me to be chicken feed for the opportunity to make a 1/16th or even a 1/8th on your trade. I'm interested in your mechanics of entering and exiting a trade, please share them. Later, Cader

To: DRRISK who wrote (256)	2/27/1998 12:50:00 AM
From: Dan Duchardt	Respond to of 1086

DrRisk, I don't think the change is going to encourage the MMs to do anything differently, but it should avoid a situation that confronts everyone trying to use SOES. In the past, if you placed a SOES order for a "moving" stock, chances are your order would get queued with other SOES orders. If you were left in the queue when orders in front of yours executed against the MMs, and the MMs subsequently vacated the inside market, your SOES order became invalid and was thrown out. If an ECN order popped between the bid and ask on your execution side just as you were sending a SOES order, or if you simply did not notice that there were only ECNs at the inside, your order became invalid and was dropped. The change simply allows your order to stay in the SOES queue until it either executes against an MM at the inside market, or times out in 90 seconds, instead of being thrown out whenever ECNs stand alone at the inside. I'm interested in your response to Cader's question. In my opinion, using ECNs, especially when needed to get out of a position gone bad, is well worth the extra price compared to losing a teenie or more on 1000 shares. Dan